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TMI Blog1986 (11) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... icy from the LIC was includible in the principal value of the estate left by the deceased ? (2) If the answer to question No. 1 is in the affirmative, then, was the Tribunal justified in holding that the amount of Rs. 1 lakh liable to be treated as a separate estate be not assessed separately under section 34(3) of the Estate Duty Act ? " The facts relevant for the purpose of deciding the aforesaid questions do not require detailed recitation of the same. Prem Narain Sharma died in Agra in a car accident on May 23, 1973, leaving behind his wife, Smt Sham Kumari, and two sons, namely, Suresh Sharma and Vinod Sharma, and three unmarried daughters. The deceased had taken an accident-cum-life policy under which the normal insured amount w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1975, dismissed the appeal. The accountable person went up in appeal to the Appellate Tribunal. It was contended before the Tribunal that the sum of Rs. 1 lakh was payable only in case the insured died as a result of an accident and, therefore, the insured did not have any interest in the sum during his lifetime. For the proposition advanced before the Appellate Tribunal, reliance had been placed on the decision in CED v. Kasturi Lal Jain [1974] 93 ITR 435 (J K). The appellant had also relied on another decision in CED v. Smt. Motia Rani Malhotra [1975] 98 ITR 42 (P H). Before the Appellate Tribunal, another alternative argument made was that if the deceased was competent to dispose of the policy, then the sum of rupees one lakh would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isposition of the property. In any event, the disposition vested in the nominee a right in the property. It did not pass on the death of the deceased. Therefore, the deceased was not competent to dispose of the moneys payable under the personal accident policy and the sum of Rs. 2 lakhs was not includible in the principal value of the estate of the deceased for purposes of estate duty ...... An accident insurance policy cannot be construed as a movable property unlike a life insurance policy or an annuity because, as laid down in section 2(15) of the Estate Duty Act, 1953, it is not only necessary for the person to have property or interest in property but that interest must be in regard to a movable property and his interest should also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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